In Bangladesh, Micro, Small and Medium-sized Enterprises (MSMEs) form a major share of the country’s GDP. However, this sector is not adequately aware of climate change impacts, especially in the southwest (coastal) region of the country, which is highly vulnerable to cyclones and sea-level rise. There is also a lack of awareness around potential mechanisms, such as funding opportunities, to reduce such vulnerabilities.

Considering that MSMEs are not equipped to cope with intense disasters, there is a need for an assessment of adaptation investment opportunities that can build resilience. Although some research exists on mitigation investments in Bangladesh, the novelty of this project lies in the fact that, so far, no technical assessment has been conducted recognising that effective adaptation investment is the key to sustainability, specifically for MSMEs.

In response to this, BCAS and BUILD will utilise the CDKN funding to conduct some additional research on adaptation investment options to initiate policy advocacy for private sectors and relevant ministries. To gather the existing knowledge of stakeholders, 2 divisional level and 2 district level consultations, along with 25 Key Informant Interviews (KIIs), will be conducted. The data will be analysed and synthesised to identify the key adaptation investment needs and opportunities of the selected sectors as well as what kind of policy changes or awareness gaps may be addressed to unlock these investments.